The common European currency was guided lower mid-Tuesday where it was stopped by the strong support of the 200-hour SMA and a junior channel circa 1.660.
A significant bullish boost to this currency was seemingly provided by the inaugural speech of the new Italian PM as a result of which the pair surged 62 pips within three hours. Its subsequent movement was sideways limited from above by the 100-period (4H) SMA at 1.172.
The rate still shows some potential up to the junior channel line, the monthly PP and the weekly R1 at 1.1760. Given that no significant data releases are scheduled, the Euro should maintain its current trading range in the junior pattern, with the upper boundary being the 1.1760 mark and the lower one—the 200-hour and 55-period (4H) SMAs circa 1.1665.
